In the above example, the remaining balance gets accounted for as a loss to maintain the fiction of the facility’s not-for-profit status. It also provides the b

In the above example, the remaining balance gets accounted for as a loss to maintain the fiction of the facility’s not-for-profit status. It also provides the basis for a kickback the federal government sends to this hospital called Disproportionate Share Hospital payments [0]. In medical parlance, this is called uncompensated care or uncompensated revenue. The Center for Medicare and Medicaid provides a ton of detail [1]. [0]: https://en.wikipedia.org/wiki/Disproportionate_share_hospital https://en.wikipedia.org/wiki/Disproportionate_share_hospita... [1]: https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/Paper-Based-Manuals-Items/CMS021935 https://www.cms.gov/Regulations-and-Guidance/Guidance/Manual...